ARMY VEHICLES

Otago Daily Times, Issue 25718, 14 December 1944, Page 6

ARMY VEHICLES

. IRREGULAR SALES COMMITTEE’S REPORT TO HOUSE (F.0.P.R.) WELLINGTON, Dec. 13. The administration of the Ministry of Supply in regard to the handling of war-time stocks arid the disposal of surplus army motor vehicles was the subject of a' special report presented 'in the House of Representatives to-day by the Public Accounts Committee of the House. This committee was authorised to

conduct an irivestigation and call witi nesses following a two days’ debate in the House about two months ago, when the Opposition alleged that there had been irregularities, particularly in ■ connection with the sales of vehicles at Christchurch which were mentioned in the annual report of the Controller and Auditor-general. ’ . Comments Justified The report, which was presented by the chairman of the committee, Mr T. H. McCombs (Govt., Lyttelton), stated that the committee agreed that the ’ comments of the Controller and Audi-tor-general were, substantially in accordance .with the facts as he found. them and were supported by the results of a careful checking of the departmental records by his inspectors. In extenuation of any weaknesses or defects found In the administration of war-time departments, concerning which most of the adverse comment had been made, the committee found that there had been considerable difficulty both in obtaining sufficient trained staff and also in improvising methods of dealing with sudden emerfencies. While the committee had not een able to complete its inquiries into all the matters raised in the report, it felt that it could not usefully add to the Auditor-general’s comments, except in regard to the Ministry of Supply and » the disposal of army vehicles. “In his remarks on the Ministry of Supply, the Auditor-general reports a number of instances where the stocks held are either in excess of requirements or are not quite suitable for the purpose the report continued. “Many of these goods have been obtained on lend-lease terms, and it should be pointed out that lend-lease goods which are no longer required for war purposes become surplus and cannot be disposed of or used until agreement can be reached with the United States of America. Ministry’s Excess Stocks

“As always occurs in war-time, some of the excess goods are held because orders were placed in anticipation of exigencies which did not arise.. In some instances where goods were' proved to be not quite suitable for the purpose intended, a war-time substitute was sent by the supplying country because the particular goods ordered could not be obtained. Thq committee has noted that the Auditor-* general agrees that since his previous report an improvement has been made and 'continues to be made in the accounting and organisation of this department.” Referring to the disposal of army vehicles, the report states that it was evident that all. the valuers appointed to value the vehicles did riot follow the same procedure on all occasions, and that the officials acting as disposal officers did not always have written authority so to act. Many of the arrangements for valuing and disposal were made in discussions and over the telephone, and ' as the conversations were not confirmed in writing confusion arose as to the precise arrangement made.

Price Concessions Granted

The official who acted for a' period as the disposal officer at Christchurch on behalf of the Minister of Supply, the report states, exceeded his duties by granting price concessions to two army officers without proper authority, and also supplied petrol to the purchasers of motor vehicles in excess of the authorised quantity. Administrative difficulties were created by the failure of the then chief valuer to co-operate with the Army Vehicles Disposal Board, to which he was attached as technical adviser and chief valuer.. This attitude of the officer referred to towards those in authority was responsible for the-work of disposal being temporarily disturbed, ; and also for the development of unnecessary friction. . . Evidence was also given, the report , continues, that a full investigation by 1 both the Audit Department and the Array Security "Intelligence Bureau was'made into the sale of certain cars in Christchurch to army officers. With the exception of those cars where the disposal officer exceeded his authority by granting a > special allowance, the cars were sold in accordance with the, then policy of the Ministry of Supply, at values supported by’ a competent valuer working in accordance with the policy of the department. • Officers to Pay Surcharges

A report on all the transactions was submitted by the Auditor-general to the Crown Law Office, and the opinion was received that no legal action would succeed against any of the officers concerned or the officer who bought a truck and resold it immediately at a profit of £IOO. The investigation was continued, and as a result proceedings were taken for breaches of the Oil Fuel Regulations against those . who were' involved in the handing over and acceptance of Government petrol. In addition, the report states, the army officers had now been surcharged for work done on their cars after the valuation, unauthorised running on private occasions by army vehicles, and for discounts given. In the two cases which were not in accordance with the regulations the surcharges amounted to £142 16s lOd, of which £127 7s had been paid into the public account to date, and the Auditor-general stated that arrangements bad been made for the recovery of the remainder. Further inquiries were being made to see if other action was warranted. “In view of the investigations made by the committee last year into. the accounts of the armed forces,” adds the report, “the committee is pleased to note that this year the Auditor-general reports that' substantial improvements have been made, though matters are still not wholly 1 satisfactory.”